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Financial risk management (Tables)
 12 Months Ended
Jun. 30, 2022
Text block [abstract]  
Summary of foreign currency risk arising from financial assets and liabilities, which are denominated in currencies other than the US dollar
The following table shows the carrying values of financial assets and liabilities at the end of the reporting period denominated in currencies other than the US dollar that are exposed to foreign currency risk:
 
Net financial (liabilities)/assets - by currency of denomination
  
2022
 
 
2021
 
 
  
US$M
 
 
US$M
 
AUD
   
 
(3,649
)
      (4,421 ) 
CLP
   
 
(602
)
 
      (649 ) 
GBP
   
 
388
 
      535  
EUR
   
 
280
 
      366  
Other
   
 
187
 
      128  
    
 
 
     
 
 
  
Total
   
 
(3,396
)
      (4,041 ) 
    
 
 
     
 
 
  
Summary of Financial Assets and Liabilities by Class
The financial assets and liabilities are presented by class in the table below at their carrying amounts.
 
 
  
IFRS 13
Fair value
hierarchy
Level
1
 
 
IFRS 9 Classification
  
2022

US$M
 
  
2021
US$M
 
Current cross currency and interest rate swaps
2
      2     Fair value through profit or loss   
 
–
 
      20  
Current other derivative contracts
3
      2,3     Fair value through profit or loss   
 
326
 
      207  
Current other financial assets
           
Amortised cost 

   
 
100
 
      –  
Current other investments
5
      1,2     Fair value through profit or loss   
 
203
 
      3  
Non-current
cross currency and interest rate swaps
2
      2     Fair value through profit or loss   
 
136
 
      1,123  
Non-current
other derivative contracts
3
      2,3     Fair value through profit or loss   
 
16
 
      152  
Non-current
other financial assets
4
      3     Fair value through profit or loss   
 
273
 
      –  
Non-current
investment in shares
     
1,3

     Fair value through other comprehensive income   
 
138
 
      31  
Non-current
other investments
5
      1,2     Fair value through profit or loss   
 
239
 
      304  
                 
 
 
     
 
 
  
Total other financial assets
                
 
1,431
 
      1,840  
Cash and cash equivalents
            Amortised cost   
 
17,236
 
      15,246  
Trade and other receivables
6
            Amortised cost   
 
1,674
 
      2,363  
Provisionally priced trade receivables
      2     Fair value through profit or loss   
 
3,478
 
      3,547  
                 
 
 
     
 
 
  
Total financial assets
                
 
23,819
 
      22,996  
                 
 
 
     
 
 
  
Non-financial
assets
                
 
71,347
 
      85,931  
                 
 
 
     
 
 
  
Total assets
                
 
95,166
 
      108,927  
                 
 
 
     
 
 
  
                                
Current cross currency and interest rate swaps
2
      2     Fair value through profit or loss   
 
358
 
      –  
Current other derivative contracts
3
      2,3     Fair value through profit or loss   
 
118
 
      52  
Current other financial liabilities
7
            Amortised cost   
 
103
 
      78  
Non-current
cross currency and interest rate swaps
2
      2     Fair value through profit or loss   
 
1,466
 
      586  
Non-current
other derivative contracts
3
      2,3     Fair value through profit or loss   
 
31
 
      –  
Non-current
other financial liabilities
7
            Amortised cost   
 
500
 
      560  
                 
 
 
     
 
 
  
Total other financial liabilities
                
 
2,576
 
      1,276  
Trade and other payables
8
            Amortised cost   
 
5,223
 
      6,277  
Provisionally priced trade payables
      2     Fair value through profit or loss   
 
1,385
 
      574  
Bank loans
9
            Amortised cost   
 
2,472
 
      2,260  
Notes and debentures
9
            Amortised cost   
 
11,363
 
      14,769  
Lease liabilities
                
 
2,576
 
      3,896  
Other
9
            Amortised cost   
 
17
 
      58  
                 
 
 
     
 
 
  
Total financial liabilities
                
 
25,612
 
      29,110  
                 
 
 
     
 
 
  
Non-financial
liabilities
                
 
20,788
 
      24,212  
                 
 
 
     
 
 
  
Total liabilities
                
 
46,400
 
      53,322  
                 
 
 
     
 
 
  
 
1
 
All of the Group’s financial assets and financial liabilities recognised at fair value were valued using market observable inputs categorised as Level 2 unless specified otherwise in the following footnotes.
 
2
 
Cross currency and interest rate swaps are valued using market data including interest rate curves (which include the base LIBOR rate and swap rates) and foreign exchange rates. A discounted cash flow approach is used to derive the fair value of cross currency and interest rate swaps at the reporting date.
 
3
Includes other derivative contracts of US$
 
nil (2021: US$121 million) categorised as Level 3. Significant items in FY2021 were derivatives embedded in physical commodity purchase and sales contracts of gas in Trinidad and Tobago which were disposed as part of the merger of the Petroleum business during the period.
 
4
Includes receivables contingent on outcome of future events relating to mining
,
and regulatory approvals of US$233 million (2021: US$ nil).
 
5
Includes investments held by BHP Billiton Foundation which are restricted and not available for general use by the Group of US$252
 
million (2021: US$260 million) of which other investment (
mainly 
US Treasury Notes) of US$119
 
million categorised as Level 1 (2021: US$72 million).
 
6
Excludes input taxes of US$427
 
million (2021: US$486 million) included in other receivables.
 
7
Includes the discounted settlement liability in relation to the cancellation of power contracts at the Group’s Escondida operations.
 
8
Excludes input taxes of US$79
 
million (2021: US$176 million) included in other payables.
 
9
All interest bearing liabilities, excluding lease liabilities, are unsecured.
Summary of Carrying Amounts of Group's Notes and Debentures by Currency and Derivatives Which Hedge
The table below shows the carrying amounts of the Group’s notes and debentures by currency and the derivatives which hedge them:
 
•  
The carrying amount of the notes and debentures includes foreign exchange remeasurement to
period-end
rates and fair value adjustments when included in a fair value hedge.
 
•  
The breakdown of the hedging derivatives includes remeasurement of foreign currency notional values at
period-end
rates, fair value movements due to interest rate risk, foreign currency cash flows designated into cash flow hedges, costs of hedging recognised in other comprehensive income, ineffectiveness recognised in the income statement and accruals or prepayments.
 
•  
The hedged value of notes and debentures includes their carrying amounts adjusted for the offsetting derivative fair value movements due to foreign currency and interest rate risk remeasurement.
 
 
  
 
 
  
Fair value of derivatives
 
 
 
 
2022
US$M                                    
  
Carrying
amount of
notes and
debentures
 
  
Foreign
exchange
notional
at spot
rates
 
  
Interest
rate risk
 
 
Recognised
in cash flow
hedging
reserve
 
 
Recognised
in cost of
hedging
reserve
 
  
Recognised
in the
income
statement
1
 
 
Accrued
cash
flows
 
 
Total
 
 
Hedged
value of
notes and
debentures
2
 
 
  
A
 
  
B
 
  
C
 
 
D
 
 
E
 
  
F
 
 
G
 
 
B to G
 
 
A + B + C
 
USD
   
 
4,740
 
   
 
–
 
   
 
(16
 )  
 
–
 
  
 
–
 
   
 
(7
 )  
 
86
 
  
 
63
 
  
 
4,724
 
GBP
   
 
2,599
 
   
 
796
 
   
 
(115
 )  
 
(35
 )  
 
13
 
   
 
26
 
  
 
42
 
  
 
727
 
  
 
3,280
 
EUR
   
 
3,449
 
   
 
585
 
   
 
112
 
  
 
(16
 )  
 
8
 
   
 
(4
 )  
 
45
 
  
 
730
 
  
 
4,146
 
CAD
   
 
575
 
   
 
167
 
   
 
5
 
  
 
(8
 )  
 
6
 
   
 
(3
 )  
 
1
 
  
 
168
 
  
 
747
 
    
 
 
     
 
 
     
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
  
Total
   
 
11,363
 
   
 
1,548
 
   
 
(14
 )  
 
(59
 )  
 
27
 
   
 
12
 
  
 
174
 
  
 
1,688
 
  
 
12,897
 
    
 
 
     
 
 
     
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
  
       
 
  
 
 
  
Fair value of derivatives
 
 
 
 
2021
US$M                                    
  
Carrying
amount of
notes and
debentures
 
  
Foreign
exchange
notional
at spot
rates
 
  
Interest
rate risk
 
 
Recognised
in cash flow
hedging
reserve
 
 
Recognised
in cost of
hedging
reserve
 
  
Recognised
in the
income
statement
1
 
 
Accrued
cash
flows
 
 
Total
 
 
Hedged
value of
notes and
debentures
2
 
 
  
A
 
  
B
 
  
C
 
 
D
 
 
E
 
  
F
 
 
G
 
 
B to G
 
 
A + B + C
 
USD
      6,270        –        (318 )      –       –        11       77       (230 )      5,952  
GBP
      3,387        435        (544 )      (81 )      25        (34 )      53       (146 )      3,278  
EUR
      4,486        73        (418 )      (33 )      27        7       49       (295 )      4,141  
CAD
      626        142        (21 )      (28 )      25        (2 )      (2 )      114       747  
    
 
 
     
 
 
     
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
  
Total
      14,769        650        (1,301 )      (142 )      77        (18 )      177       (557 )      14,118  
    
 
 
     
 
 
     
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
  
 
1
Predominantly related to ineffectiveness.
 
2
Includes US$3,018
 
million (2021: US$3,018
million) of fixed rate debt not swapped to floating rate that is not in a hedging relationship. 
Summary of Hedging instruments
The following table shows the notional value of the Group’s hedging instruments that are expected to expire before 30 June 2023.
 
Hedging instrument
  
Notional
currency
  
Notional value

US$M
 
  
Notional value to mature before
LIBOR expires FY2023

US$M
 
Interest rate swaps
    USD   
 
10,719
 
   
 
748
 
    
 
   
 
 
     
 
 
  
Cross-currency interest rate swaps
    EUR   
 
3,187
 
   
 
404
 
     GBP   
 
1,673
 
   
 
923
 
    
 
   
 
 
     
 
 
  
    
Total
   
 
15,579
 
   
 
2,075
 
    
 
   
 
 
     
 
 
  
Summary of Reconciliation of Components of Equity and Analysis of Movements in Reserves for all Hedges
The following table shows a reconciliation of the components of equity and an analysis of the movements in reserves for all hedges. For a description of these reserves, refer to note
17
‘Other equity’.
 
2022
US$M
  
Cash flow hedging
reserve
 
 
Cost of hedging
reserve
 
 
Total
 
 
  
Gross
 
 
Tax
 
 
Net
 
 
Gross
 
 
Tax
 
 
Net
 
 
 
 
At the beginning of the financial year
   
 
142
 
  
 
(42
) 
  
 
100
 
  
 
(77
) 
  
 
23
 
   
 
(54
) 
  
 
46
 
Add: Change in fair value of hedging instrument recognised in OCI
   
 
(914
)
  
 
274
 
  
 
(640
)
  
 
–
 
  
 
–
 
   
 
–
 
  
 
(640
)
Less: Reclassified from reserves to interest expense – recognised through OCI
   
 
831
 
  
 
(250
)
  
 
581
 
  
 
50
 
  
 
(15
)
 
   
 
35
 
  
 
616
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
  
At the end of the financial year
   
 
59
 
  
 
(18
) 
  
 
41
 
  
 
(27
) 
  
 
8
 
   
 
(19
) 
  
 
22
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
  
       
2021
US$M
    Cash flow hedging
reserve		     Cost of hedging
reserve		     Total  
     Gross     Tax     Net     Gross     Tax      Net        
At the beginning of the financial year
      71       (21 )      50       (32 )      9        (23 )      27  
Add: Change in fair value of hedging instrument recognised in OCI
      863       (259 )      604       –       –        –       604  
Less: Reclassified from reserves to interest expense – recognised through OCI
      (792 )      238       (554 )      (45 )      14        (31 )      (585 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
  
At the end of the financial year
      142       (42 )      100       (77 )      23        (54 )      46  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
  
 
Summary of Movement of Interest Bearing Liabilities and Related Derivatives
The movement in the year in the Group’s interest bearing liabilities and related derivatives are as
follows:
 
 
  
Interest bearing liabilities
 
 
Derivatives
(assets)/

liabilities
 
 
 
 
2022
US$M
  
Bank
loans
 
 
Notes and
debentures
 
 
Lease
liabilities
 
 
Bank
overdraft
and
short-term

borrowings
 
  
Other
 
 
Cross
currency
a
n
d
interest
rate swaps
 
 
Total
 
At the beginning of the financial year
   
 
2,260
 
  
 
14,769
 
  
 
3,896
 
  
 
–
 
   
 
58
 
  
 
(557
) 
        
Proceeds from interest bearing liabilities
   
 
1,150
 
  
 
–
 
  
 
–
 
  
 
–
 
   
 
14
 
  
 
–
 
  
 
1,164
 
Settlements of debt related instruments
   
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
   
 
–
 
  
 
–
 
  
 
–
 
Repayment of interest bearing liabilities
1
   
 
(941
)
  
 
(1,232
)
  
 
(1,163
)
  
 
–
 
   
 
(55
)
  
 
–
 
  
 
(3,391
)
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
  
Change from Net financing cash flows
   
 
209
 
  
 
(1,232
)
  
 
(1,163
)
  
 
–
 
   
 
(41
)
  
 
–
 
  
 
(2,227
)
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
  
Other movements:
                                                          
Divestment and demerger of subsidiaries and operations
   
 
–
 
  
 
–
 
  
 
(492
)
  
 
–
 
   
 
–
 
  
 
–
 
        
Interest rate impacts
   
 
–
 
  
 
(1,286
)
  
 
–
 
  
 
–
 
   
 
–
 
  
 
1,277
 
        
Foreign exchange impacts
   
 
3
 
  
 
(894
)
  
 
(126
)
  
 
–
 
   
 
(2
 )  
 
898
 
        
Lease additions
   
 
–
 
  
 
–
 
  
 
866
 
  
 
–
 
   
 
–
 
  
 
–
 
        
Remeasurement of index-linked freight contracts
   
 
–
 
  
 
–
 
  
 
(369
)
  
 
–
 
   
 
–
 
  
 
–
 
        
Other interest bearing liabilities/derivative related changes
   
 
–
 
  
 
6
 
  
 
(36
)
  
 
–
 
   
 
2
 
  
 
70
 
        
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
          
At the end of the financial year
   
 
2,472
 
  
 
11,363
 
  
 
2,576
 
  
 
–
 
   
 
17
 
  
 
1,688
 
        
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
          
       
     Interest bearing liabilities     Derivatives
(assets)/
liabilities		        
2021
US$M
    Bank
loans		     Notes and
debentures		     Lease
liabilities		     Bank
overdraft
and
short-term

borrowings		      Other     Cross
currency
and
interest
rate swaps		     Total  
At the beginning of the financial year
      2,492       21,045       3,443       –        68       (433 )         
Proceeds from interest bearing liabilities
      504       –       –       –        64       –       568  
Settlements of debt related instruments
      –       –       –       –        –       167       167  
Repayment of interest bearing liabilities
1
      (737 )      (6,888 )      (770 )      –        –       –       (8,395 ) 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
  
Change from Net financing cash flows
      (233 )      (6,888 )      (770 )      –        64       167       (7,660 ) 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
  
Other movements:
                                                          
Loss on bond repurchase
      –       579       –       –        –       (184 )         
Interest rate impacts
      –       (764 )      –       –        –       704          
Foreign exchange impacts
      (1 )      798       115       –        (14 )      (796 )         
Lease additions
      –       –       1,223       –        –       –          
Remeasurement of index-linked freight contracts
      –       –       (59 )      –        –       –          
Other interest bearing liabilities/derivative related changes
      2       (1 )      (56 )      –        (60 )      (15 )         
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
          
At the end of the financial year
      2,260       14,769       3,896       –        58       (557 )         
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
          
 
1
 
Includes US$33 million (2021: US$38 million) of Discontinued operations cash flows.